GasBuddy News Article

58

votes

Over-Paying At The Pump? Boost Speculator Margin Requirements

Forbes
--
One of the key things I have learned in analyzing high gasoline prices over the last several years is that the rules of economics do not apply to gasoline prices in the way that I previously thought. Most of us are taught that price changes are a result of changes in the supply and demand for a commodity.

But it turns out that when you analyze changes in the supply and demand for oil, you end up concluding that the price of oil should be either unchanged or lower in 2012. Why? Simply put, the demand for oil is rising more slowly than the supply.

For example, in 2011, world oil demand crept up a mere 0.8% and that demand is expected to rise a mere 0.9% in 2012 to 89.9 million barrels a day, according to the International Energy Agency.

As the article concludes, "For the sake of sustaining economic growth and giving people a chance to spend on something other than gasoline, it may be time for those exchanges to boost speculator margin requirements some more."

Gas prices are so high its killing millions of people and the 89 million out of work.. FOOD OR GAS FOR CAR? it must come down or inflation will be more out of control than the All time high this yr of 11% 3 times higher than the year before...

This simple commonsense reality makes for a very interesting article. Indeed there are many who have made their wealth betting on unrest and war to set prices on global commodities. As commodities, these things happen to be mundane necessities, like gasoline. If these types were obliged to take delivery of the product, as working retailers do, my bet is gasoline prices would achieve stability at a reasonable cost for drivers. My two (2) cents' worth.